Question: Management asserts that entity-level controls are designed adequately and operating effectively to reduce to an acceptably low level the risk of managers and employees embellishing

Management asserts that entity-level controls are designed adequately and operating effectively to reduce to an acceptably low level the risk of managers and employees embellishing performance results or misusing company resources. What specific procedures would you as the auditor use to obtain audit evidence about the design and implementation of the clients internal control system? What key controls would you expect to find in place if managements assertion is true? What are the inherent limitations of internal control?

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Accounting Questions!